stamp duty on pref shares

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CS Abhilasha Pandey (Querist)
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09 August 2010 hi,
We are in process of issuing 50,000 Pref shares at face value Rs. 10/- and at premium Rs. 990/-.

What will be the stamp duty on issue , whether stamp duty will be paid on total amount including premium or on face value of shares ?

What is mode for payment of stamp duty, can we pay it by the mode of revenue stamp ?

Regards,
Abhilasha

Jagruti (CS)

Jagruti (CS) (Expert)
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09 August 2010 Stamp duty on share certificate is question of state Law.

First, check from where the share certificate is issued acordingly the state in which it is issued stamp duty of that state will be applicable.

In case certificate are issued from Bombay than stamp duty is 0.1% on value of condiseration i.e. market value of shares issued . Thus in ur case if cert. issued in Bombay than 0.1% of Issue Price i.e 10+990=1000.

In Bombay only Franking or eStamping is only means of paying stamp duty.

CS Abhilasha Pandey

CS Abhilasha Pandey (Querist)
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09 August 2010 That means stamp duty will be paid on Rs. 50,000,000(50,000*Rs. 1,000)@.1%

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CS Abhilasha Pandey

CS Abhilasha Pandey (Querist)
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09 August 2010 That means stamp duty will be paid on Rs. 50,000,000(50,000*Rs. 1,000)@.1%

Jagruti (CS)

Jagruti (CS) (Expert)
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09 August 2010 Right, where stamp will be 50,000, if share ceertificate are issued from Mumbai.

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CS Abhilasha Pandey

CS Abhilasha Pandey (Querist)
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09 August 2010 Thanks Jagruti.
Is equity and pref share format same ?
Premium amount is required to be written on Share Certificate ?
Where franking is done on SC, on the front or back side ?

Jagruti (CS)

Jagruti (CS) (Expert)
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10 August 2010 Format can be same for both pref & Equity shares.

on share certificate only face value is stated.
Franking can be done any side as u want.